Personal Guarantor Cannot Escape a Personal Guarantee By…
June 02, 2016 —
David Adelstein – Florida Construction Legal UpdatesIn a prior article, I discussed the point that a
personal guarantor cannot escape a contractual requirement of a
personal guarantee merely by executing the guarantee as a corporate officer.
The recent decision Frieri v. Capital Investment Services, Inc., 41 Fla. L. Weekly D1189a (Fla. 3d DCA 2016) illustrates this point. In this case, a company hired an individual to help grow that company’s business. The contract required the individual to invest $6 Million into a trust in consideration of the company’s president transferring substantial shares of the company into the trust. The objective was that the trust would own the controlling shares of the company. The money was transferred. However, the shares were never placed in the trust and the trust never received controlling interest in the company.
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David M. Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
PAGA Right of Action Not Applicable to Construction Workers Under Collective Bargaining Agreement
December 26, 2022 —
Garret Murai - California Construction Law BlogCalifornia is one of the most employee-friendly states in the country. From strict hiring laws (don’t think about asking about an applicant’s criminal, credit or even salary history), to generous benefits (minimum wage, overtime, meal and rest breaks, family medical leave, etc.) and strict anti-harassment laws (if you have to think about it, even for a second, don’t do it), to protections for terminated workers (whistle blower protections, WARN notices, non-compete restrictions), California workers enjoy protections that many others do not.
This includes PAGA, or the Private Attorneys General Act, which authorizes aggrieved employees to file lawsuits against their employers to recover civil penalties on behalf of themselves, other employees, and the State of California for Labor Code violations. In general, the right of an employee to file a PAGA action cannot be waived by contract. However, Labor Code section 2699.6 which was enacted in 2018 provides an exception for construction workers who perform work under certain collective bargaining agreements.
In the next case, Oswald v. Murray Plumbing and heating Corporation, 82 Cal.App.5th 938 (2022), the 2nd District Court of Appeal examined whether collective bargaining agreement with a retroactive date, signed after an employee was terminated, precluded an employee from bringing a PAGA action.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Experts: Best Bet in $300M Osage Nation Wind Farm Dispute Is Negotiation
March 11, 2024 —
Daniel Tyson - Engineering News-RecordNearly two months after a federal judge ruled that renewables developer Enel Green Power North America must deconstruct 84 land-based wind turbines because it did not secure mineral rights on Osage Nation land in northern Oklahoma, two energy sector attorneys say the unit of an Italy-based company must negotiate with the tribe.
Reprinted courtesy of
Daniel Tyson, Engineering News-Record
Mr. Tyson may be contacted at tysond@enr.com
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New Standard Addresses Wind Turbine Construction Safety Requirements and Identifies Hazards
October 09, 2018 —
Christopher Daniels - Construction ExecutiveAmerican Society of Safety Professionals’ industry consensus standard, ANSI/ASSP A10.21 – 2018 Safety Requirements for Safe Construction and Demolition of Wind Generation/Turbine Facilities, is the first standard to identify and address hazards specific to wind turbine construction. It includes nearly a dozen appendices that provide additional consideration and guidance for hazards that vary between projects, turbines and geographical areas.
The new A10.21 standard starts by requiring a site hazard identification prior to construction commencing. It establishes the general contractor as the responsible party for site hazard identification assessment. This is because the general contractor is usually one of the first entities on site able to assess the various challenges/concerns such as: geography, utilities, environmental, etc. This assessment is usually done by driving the project site and identifying GPS coordinates of specific challenges.
Reprinted courtesy of
Christopher Daniels, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Daniels may be contacted at
chris.daniels@mortenson.com
California Governor Signs SB 496 Amending California’s Anti-Indemnity Statute
June 05, 2017 —
William S. Bennett - Saxe Doernberger & Vita, P.C.The bill amends Cal. Civ. Code § 2782.8 as it applies to indemnity agreements with design professionals. The pre-existing § 2782.8 prohibited public agencies from requiring indemnity from design professionals for anything other than claims arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of the design professional.
Under the newly passed bill, the indemnity restrictions imposed on public agencies when contracting with design professionals will now apply to all parties contracting with design professionals for professional services (effective Jan. 1, 2018). These restrictions also apply to a party contractually imposing a defense obligation on the design professional.
The revised statute specifically identifies architects, landscape architects, professional engineers, and professional land surveyors as included within the meaning of “design professional,” however it is unclear whether that is the extent of the phrase’s meaning.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
Changes To Commercial Item Contracting
May 29, 2023 —
Marcos R. Gonzalez - ConsensusDocsThe FAR Council has recently published two changes to commercial item contracting that clarify the definition of commercial services and simplify commercial item determinations (“CIDs”) for contracting officers (“COs”). Since the 1990s, the federal government has encouraged the purchase of commercial items to ease the regulatory burden on vendors who have not previously conducted federal business, encourage innovation, and lower prices[
1]. These different objectives (cost savings, broadening markets, innovation) often have corollary policies; for example, vendors who are not accustomed to the regulatory burdens of government business are encouraged to enter the market by being exempted from a slew of regulations (found in standard commercial items clause FAR 52.212-4). As a result, the regulations applicable to commercial item contracting are those required by statute and executive orders in addition to generic commercial terms that may be tailored due to potential variation in commercial terms.[
2]
Commercial Products v. Commercial Services
The first change, in effect since November 2021 pursuant to the 2019 National Defense Authorization (“NDAA”), split the old definition of “commercial item” into two separate definitions: “commercial product” and “commercial service.”[
3] We are now blessed with the following definitions of commercial products and services, respectively:
Commercial product means—
(1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–
(i) Has been sold, leased, or licensed to the general public; or
(ii) Has been offered for sale, lease, or license to the general public;
Reprinted courtesy of
Marcos R. Gonzalez, Peckar & Abramson, P.C.
Mr. Gonzalez may be contacted at mgonzalez@pecklaw.com
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Real Estate & Construction News Roundup (3/6/24) – Steep Drop in Commercial Real Estate Investment, Autonomous Robots Being Developed for Construction Projects, and Treasury Department Proposes Regulation for Real Estate Professionals
April 08, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, major league sports franchises turn to real estate to increase their value, the Associated Builders and Contractors releases a guide on artificial intelligence, New York City helps landlords convert empty office space into housing, and more!
- The Treasury Department proposed a regulation that would require real estate professionals to report information to the agency about all-cash sales of residential real estate to legal entities, trusts and shell companies. (Fatima Hussein, AP)
- For decades, major league teams depended on ticket sales, concessions and TV deals to generate revenue, but team owners in recent years have turned to real estate development to bring in extra cash and drive up the values of their franchises. (Nathaniel Meyersohn, CNN)
- The U.S. commercial real estate market saw a steep drop in investment last year, with the market plummeting by more than 50% to the lowest level since 2012 and CBRE noting a 91% year-over-year drop in direct real estate company investments. (Yuheng Zhan, Business Insider)
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Pillsbury's Construction & Real Estate Law Team
More Money Down Adds to U.S. First-Time Buyer Blues: Economy
August 20, 2014 —
Michelle Jamrisko and Alexis Leondis – BloombergThe challenges facing prospective buyers of the least expensive homes in the U.S. are getting harder to overcome.
Already beset by stagnant wages, growing student debt and competition from investors who are snapping up listings, those looking to purchase moderately priced houses must also provide more cash up front. The median down payment for the cheapest 25 percent of properties sold in 2013 was $9,480 compared with $6,037 in 2007, the last year of the previous economic expansion, according to data from 25 of the largest metro areas compiled by brokerage firm Redfin Corp.
The higher bar is a symptom of still-tight credit that is crowding out first-time buyers even as interest rates remain near historical lows. Younger adults, who would normally be making initial forays into real estate, are among those most affected, weakening the foundations of the housing market and limiting its contribution to economic growth.
Ms. Jamrisko may be contacted at mjamrisko@bloomberg.net; Ms. Leondis may be contacted at aleondis@bloomberg.net
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Michelle Jamrisko and Alexis Leondis, Bloomberg